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loan categorized incorrectly

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Stugotsv10
Frequent Contributor

loan categorized incorrectly

anything that can be done about a loan that is categorized incorrectly? it's an auto loan thats under "other" and I'd like for it to be accurate (it's on all 3 this way so I assume it's the lenders fault)

 

Thanks in advance 

Message 1 of 3
2 REPLIES 2
DaveInAZ
Senior Contributor

Re: loan categorized incorrectly

I had a car loan from a small local credit union a couple years ago that reported as "other", an installment loan. There's really not much you can do, the lender isn't going to change how they report things just because one customer doesn't like it, and it really doesn't make much difference, all installment loans count the same for Fico scoring.

Message 2 of 3
RobertEG
Legendary Contributor

Re: loan categorized incorrectly

The common credit reporting manual used by the big-4 CRAs provides a separate field code 8 for reporting of Portfolio Type which generally proivdes for reporting as an installment loan, while field code 9 provides for reporting of the type of installment loan by industry.

A separate and explicit code is provided under Field Code 9 to designate an installment loan as "Auto."

 

Auto loans are treated separately under certain scoring algorithms, such as your Auto Enhanced FICO score, and thus correct designation of Auto is not trivial.

 

If you have proof that it is more specifically an Auto installment loan, you can dispute the accuracy of their reporting by sending a dispute under FCRA 611 that asserts inaccuracy in reporting of Field Code 9.

The CRA then has the authoriity in their reinvestigation finding to correct field code 9.

 

Message 3 of 3
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